Kawasaki International Eco-Business Forum Presentation materials

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New efforts for recycling business

November 16, 2021

(J&T Recycling Corporation)~ Miracle Recycle ~President and CEO Tetsuo Tsuyuguchi

Today's content

1

１Introduction to J&T Recycling

２

J&T’s recycling businessin Kawasaki City

３

Local energy for local consumption throughwaste-to-energy power generation

４

Example of recent
efforts

1. PET bottle recycling
2. Home appliance recycling

1. Cooperation among municipal companies:
efforts with Showa Denko
2. Overseas development of waste
processing business2

１

Introduction to J&TRecycling

J&T Recycling: Domestic business sites

3

Previous expansion

Sapporo region

New expansion

Chiba region- Gasification melting- Food recycling- Food recycling(Sapporo Bio Food Recycle)

Sendai region (Sendai)
Chukyo region- PET bottle recycling (Kyoei J&T Recycling)- Food recycling (Bios Komaki)- Food recycling (Tohoku Bio Food Recycle)- Creation of PLA VEIL for containers/packaging- Recycled pallets- Fluorescent lamp recycling

Keihin region(Kawasaki)

Kyushu region- Food recycling (planned)

Chugoku region(Fukuyama, Hiroshima)- Incineration business- Recycled pallets- Creation of PLA VEIL forcontainers/packaging (Dia Ecotech Hiroshima)

PET bottle recycling
Waste-to-energy
Home appliance recycling
RPF manufacturing (for steelmanufacturing, etc.)

Keihin region(Yokohama)- Creation of PLA VEIL forcontainers/packaging- Food recycling (J Bio Food Recycle)

Current business structure
Sales

Solutions business

Incineration/Powergeneration

30％
PCB processing

440％
J&T Recycling
sales:
42 billion yen

Tokyo Waterfront EcoClean

福島災害廃棄物(FY2021 projection)
Collection/Transport

Kawasaki Eco
Clean

30％RecyclingbusinessYokohama Eco Clean

Food recycling

Recycled pallets

Fluorescent lamprecycling

蛍光灯工場

5２

J&T Recycling's recycling
business in Kawasaki City

1. PET bottle recycling business
2. Home appliance recycling "JFE Urban Recycle"

■ J&T Recycling: Recycling facilities in Kawasaki City 6
Overall ground plan ofKeihin region

JFE SteelMizue region
About 70 ha

Ikegami area

Tsurumigawaarea
Mizue area

Ogishima area

PETbottle
recycling

Plastic waste
to raw fuelHomeappliancerecycling
Mizue region area classifications= JFE Steel= J&T Recycling= JFE Plastic
ResourceIdemitsu Kosan

1. PET bottle recycling businessBusiness

Kawasaki PET Bottle Recycling Plant

Amountprocessed(t/year)

Details

15,000

Manufacture of flake product from pet bottle waste

Existing business
Bales

Receipt ofrawmaterials

Creation of PET flakes

Removalof foreignmaterials

Crushing
Cleaning

7

Desiccation
DryingJ&T Recycling

New field
FlakesFlake productPellets

Pelletproduct

Recycled
PET bottles

BottlemoldingDrinkmanufacturers

<Example> PET bottle B-to-B recycling

8October 2021 Start of commercial operations at West JapanPET Bottle MR Center- Company name: Kyoei J&T Recycling Corporation- Location: Tsu City, Mie Prefecture (on premises of JFE Engineering TsuWorks)- Capital: 100 million yen- Shareholding companies: J&T Recycling Corporation; Kyoei Sangyo Co.,
Ltd.; Seven & i Holdings Co., Ltd.
- Future plans: October 2021 Operation of flake manufacturing facilities
February 2022 Planned start of BtoB pellet manufacturing

Horizontal recycling
Drink
manufacturers

Bottle molding
companies
Kyoei J&T
(mechanical recycling)

J&T Recycling(Flake manufacturing)

A roughly 60%
reduction in CO2
through bottle-tobottle recycling

Cascade recycling* Compared to bottle manufacturingwith raw petrochemical materials

Consumers

Collection
Clothing

Sheets/Trays

Businesses

Homes

Stores/Vending
machines

Government
Store collection

2. Home appliance recycling "JFE Urban Recycle"
Product

Manual disassembly process

Crushing/Sorting process

Collected items

Reuse

Plastic (frames)
Iron

Singleplastics

Circuit boards
2,800 t(150,000)GlassCrusher

Raw recycledplastic materials

2,600 t/year

Plastic (covers)
Iron
8,300 t(200,000)

Copper (copper pipes, electricalwiring)~ Un-sortable copper pipes, etc.
Aluminum (heat exchangers)

Fuel (RPF)
1,300 t/year

UrethanecompacterWind-poweredsorter

Plastic (trays)
Circuit boards
Copper (copper pipes, electrical wiring)~ Un-sortable copper pipes, etc.

Iron

14,500 t(230,000)

Magneticsorter

Plastic (water tanks)
Iron
8,400 t(200,000)

Crusher

Circuit boards

11,300 t/year

Raw copper/aluminummaterials

9,000 t/year

Non-ferrous
sorterCopper (motors)■ Total 780,000 / year
(34,000 t)■ Recycling rate 97%■ Re-commercialization rate 88%

Copper, aluminum

Raw materials for steel
manufacturing

Sorting fluctuates according
to market conditions[Collected products that are manuallydisassembled]
Circuit boards, copper pipes, electricalwiring, heat exchangers, etc.

Mixed plastic

Plastic manufacturers

5,500 t/year
Smelting
companies, nonferrous traders, etc.

10３

Local energy for local consumption
through waste-to-energy power
generation

1. Efforts for local energy for local consumption through waste-toenergy power generation = Sodenwari®
2. Efforts by Kawasaki King Skyfront Tokyu Rei Hotel

1. Local energy for local consumption through waste-to-11
energy power generation
What is Sodenwari®?
⇒ Plan to supply power generated from waste processing to thegenerator of that waste

Food waste

Businessgenerating waste

Receiving attention for SDG
and CSR aspects

Burnable waste
Power supply
Biogaspowerfacilities

Sodenwari®
Urban energy

Incineration/Powergeneration facilities

Company's own
rich power source

Waste processing
Power conversion

Waste-to-energy,solar power, etc.

2. Example of efforts by Kawasaki King Skyfront Tokyu Rei Hotel 12
Hydrogen- 100% from J Bio- CO2-free power generation

Kawasaki King Skyfront Tokyu Rei Hotel

Recycling food waste
generated byrestaurants and cafesin the hotel“Zero-emissions "“Sodenwari "JFE Group collaboration

Urban Energy

J Bio Food Recycle

Power from J Bio Food
Recycle's bio gas power
generation facilities issourced by Urban Energy

Urban Energy Corporation
JFE Engineering 100% investment
Retail electric business

Food recycling and biogas power companies

JFE Group

Breakdown of Tokyu Rei Hotel's energy usage
Hydrogen: about 30% + Zero-emission power: about 70%

13４

Example of recent efforts

1. Cooperation among municipal companies: efforts withShowa Denko
2. Overseas development of waste processing business
Capital participation in Malaysian waste processing
company

1. Cooperation among municipal companies: efforts with Showa Denko 14
Showa Denko(1) RPF supplyKPR[Details]
The RPF we manufacture is supplied to Showa Denko.
It is used as a raw material for ammonia and hydrogen
manufacturing.
J&T
Recycling

Supply started: In 2014
Amount supplied: About 7,000 t/year (2021projection)(2) Discussions on steam supply

J&T Recycling
Incineration
facilities[Details]
We are investigating the environmental and economic
effects of supplying steam from our waste-to-energy
facilities (currently in use for power generation) toShowa Denko.

Showa Denko

FY2021 Implementation of FS after being selected
for subsidies for business expenses for measures
to prevent the release of carbon dioxide

New pipes (tentative)
Showa Denko(existing pipes)(Project subsidized by the Ministry of the Environment)

2. Overseas development of waste processing business

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July 2021 Investment in Malaysian waste processing company (Berjaya Alam Murni)

Photo = Signing ceremony for stock transfer (7/29)- New company name: J&T Berjaya Alam Murni- Headquarters: Kuala Lumpur, Malaysia- Capital: 100 million yen- Shareholding companies: Berjaya Enviro HD,
J&T Recycling, JFE Engineering Malaysia- Business details: General processing of industrial waste
Waste fluids, waste oil, medical waste, waste solvents, etc.
- Future plans: New construction and operation ofincineration furnace

Business
schemeThailandBerjayaCorporation

100% investment

Malaysia
Planned businesslocation

Berjaya Eco Services
Collection and sale ofwaste

Kuala Lumpur- Financing, real estate, automobilesales, hotels, etc.
- Consolidated sales of around 200billion yen- Listed on Bursa Malaysia

Berjaya Enviro Holdings
Holding company forindustrial waste business70%
investment

Indonesia
Singapore

Map of planned
business location

Waste

Berjaya Alam Murni

Target company

J&T Recycling

JFE Engineering
Malaysia

30%
investment

Support for construction
and operation ofincineration furnace

16

Thank you for listening.

17(Reference) Local energy for local consumptionReference: Regional PPS

18

What is regional PPS?
PPS companies established through the investment of PPS businesses, the government, and regional
businesses
The concept is to locally produce energy for local consumption.
The aim is to achieve an energy system that is economical, has a high environmental value, and that isresilient to disasters by combining local renewable energy, energy sources from government-owned
disposal facilities, distributed power sources, storage batteries, etc.
植物工場・養殖
Renewable energy
Optimal operation andsupply/demand managementof regional energy

What isregional PPS
Regional customers

Distributed power/
Storage batteries

Waste to energy /Biogas power

Reference: Regional PPS promoted by JFE-Gr 19
Niigata City
Niigata Swan Energy Co., Ltd.

Izumo City
Izumo En Musubi Power Co., Ltd.
JFE: The San-in Godo Bank, Ltd.:
Energia Solution & Service Co.
Main power source = Disposal facilities

JFE: Niigata City: Daishi Bank
Main power source = Disposalfacilities

Fukuyama City

Hachimantai City

Fukuyama Mirai EnergyCo., Ltd.

Sale of local energy for
local consumption(Geothermal power)

JFE: Fukuyama City: The
Hiroshima Bank

Kumamoto City
Smart Energy Kumamoto Co., Ltd.

Main power source = RDF
power

JFE: Kumamoto City

Tokorozawa City

Main power source = Disposal facilities

Tokorozawa Mirai Electric Power Co.,
Ltd.
Tokorozawa City: JFE: Hanno Shinkin Bank:
Tokorozawa Chamber of Commerce and Industry

Minamata City
Sale of local energy for
local consumption(Hydro power)

Main power source = Disposal facilities, solar

Toyohashi CityIwata City

Ho no Kuni Toyohashi Power Co., Ltd.

Smart Energy Iwata Corporation

JFE: Toyohashi City: Toyohashi Shinkin
Bank

JFE: Iwata City: Hamamatsu Iwata
Shinkin Bank

Main power source = Biomass power,
solar

Main power source = Gas engines,
wind powerExample: Sodenwari + EV garbage trucks

PACIFICO Yokohama

Food waste is collected andtransported by EV garbagetrucks

20Power conversion
J Bio
Biogas power

Charging

PPSPower supply(Sodenwari®)

Urban energy

Sale of energy(Renewable energy)<<Reference>> EV garbage truck: Garbage collection vehicle

21

with replaceable battery- Garbage truck with replaceable battery- Battery is automatically replaced with a charged one (operated by remote control at batterystation)- In case of disaster, can be used as an emergency power source at evacuation shelters

Replaceable battery[EV garbage truck]- Releases no CO2 during collectionand transport- Low running costs (25% the cost offossil fuels)- Low noise[Battery station]- Takes 3.5 minutes to replace thebattery- Can store 7 charged batteries22(Reference) Biogas power from food

■ What is a biogas power business?

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A business that uses the power of microbes toconvert the energy in food waste to electricity(renewable energy)

BiogasFood waste

Methanefermentation

EnergyRenewableenergy■ J&T Recycling's involvement in the biogas power business24

Has the greatest processing capacity in Japan in the food recycling and biogas power fields
Contributes to a de-carbonized society by popularizing biomass power for local energy for local
consumption
Hokkaido area

Processingcapacityt/day

Powergeneration
kW2020

SapporoChiba
YokohamaNagaoka*
Toyohashi*

327

4,650

2021

Sendai

367

5,430

2022

Komaki

487

5,530

2023

Kyushu area

587

7,130

JFE Group
Biogaspower business

Sapporo Bio Food Recycle(Sapporo City)

Tohoku area
Tohoku Bio Food Recycle(Sendai City)
From February 2022

Kanto area

Chubu area

Kyushu area

Chiba Biogas Center(Chiba City)
J Bio Food Recycle(Yokohama City)

Bios Komaki(Komaki City)
From fall 2022

Under discussion* JFE Engineering PFI business〇 Nagaoka City 60 t/day Food
〇 Toyohashi City 59 t/day Food +sewage sludge■ Business starts in February 2022: Tohoku Bio Food Recycle Co., Ltd.

25

Food waste recycling and biogas business in Sendai
Image ofcompletedconcept

Processing plans: 40 t/day
Processing targets:(1) General waste (business)(2) Industrial waste
Power generation: 6,500
MWh/year⇒ equivalent to about 1,500
households

1.
Establishmentof company

November 2019

2. Capital

5. StakeJ&T Recycling Corporation

45%

600 million yen

East Japan Railway Company

29%

3. Location

Miyagino Ward, Sendai City,Miyagi Prefecture

Tokyo Gas Co., Ltd.

21%

4. Start ofoperations

Planned in January 2022

Tohoku Railway Transportation
Co., Ltd.

5%■ Business starts in fall 2022: Bios Komaki Co., Ltd.

26

Food waste recycling and biogas business in the Chukyo region
Image ofcompletedconcept

Processing plans: 120 t/day
Processing targets:(1) General waste (business)(2) Industrial waste
Power generation: 9,200 MWh/year⇒ equivalent to about 3,000
households

1. Establishment of company

March 2017

4. Construction period

May 2021 to November 2022

2. Capital

600 million yen

5. Start of operations

Planned for fall 2022

3. Location

Komaki City, Aichi
Prefecture

6. StakeJ&T Recycling Corporation 100%

Participating in MESSE NAGOYA, one of the largest cross-industrial trade fairs in Japan
Venue: Port Messe Nagoya
Dates: On-site 11/10 - 11/13; Online 11/1 - 11/19